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We actually have 2 drives. Dell says the problem is with "the logical volume - the C partition" because they ran diagnostics and it didn't show problems with the drives. Think I could pull out one of the drives and try the BMR on the second one only?

I would rather go buy one than break my RAID array unnecessarily. So to be clear, Dell said the physical disks were fine?

So what did the ChkDsk say exactly?

BMR can reformat and repartition entire volumes. You'll want a disk that is at least the same size as your current disk. Don't jump the gun with the 300GB Velociraptor just yet. Dell usually offers 500GB drives minimum with their servers. You may not be able to restore to a 300GB drive.